The PJ Tatler

U.S. Household Income Drops Most in 20 Years, and It Had Nothing to Do with the Sequester

On January 1 your payroll taxes went up a couple of percentage points. That caused household income to drop like a stone, the sharpest drop in 20 years. Income dropped 3.6 percent, hitting its lowest level in more than five years.

By the way, gas prices are inching back up too.

The average American family’s income is going backwards, while the federal government continues to grow and grow and grow.





Yet, as congressional leaders and the president meet at the White House today, President Obama will badger Republicans for even more tax increases as part of a deal to avoid the sequestration cuts in the rate of the growth of government spending. Tax hikes were not part of the original sequestration deal — that’s the “moving the goal posts” that Obama aide Gene Sperling warned Bob Woodward he would regret reporting. Obama will fight for every penny of federal spending, casting any cut as draconian and extreme. And members of the media will do their best to provide cover for Obama, agreeing with him that any cuts in the rate of growth of spending are “extreme” and the Republicans are being unreasonable.

The bottom line today is that your income probably went down. Why shouldn’t federal government bureaucrats feel the same pinch the rest of us are feeling? Happy Sequester Day!


Americans Feeling the Pinch of Obamanomics